TDI Reports Sept. Enforcement Actions

The Texas Department of Insurance announced enforcement actions taken by Commissioner Mike Geeslin that became final during September.

The actions include seven license revocations, two license denials and fines and restitution totaling $1,376,556. Copies of Geeslin�¢??s orders may be obtained by contacting TDI�¢??s Public Information Office.

Only final orders are listed. An order imposing disciplinary measures becomes final 20 days after the agent or insurance company has received notice of the order unless a motion for rehearing is filed within that period. A motion for rehearing stays the finality of an order until the Commissioner of Insurance acts upon the motion or upon the operation of law.

The following commissioner’s orders are subject to appeal to state district court:

3 Mark Financial Texas, Inc of Sugarland
Order Number: 050755
Date of Order: 9/1/2005
Order Final In: September
Action Taken: $2,000 fine
Violation: Failed to submit required annual report of viatical or life settlement transactions

Action Staffing, Inc. d/b/a; Apeo Employment Systems of Abilene
Order Number: 050831
Date of Order: 9/29/2005
Order Final In: September
Action Taken: $60,000 fine; Restitution
Violation: Acted as an agent for unauthorized entities

Allstate Texas Lloyd’s of Northbrook, IL
Order Number: 050817
Date of Order: 9/23/2005
Order Final In: September
Action Taken: $75,000 fine; Restitution in the amount of $1,028,070
Violation: Imposed surcharges in excess of 10 percent in violation of Texas Insurance Code ANN. sec. 551.107 (formerly art. 21.49-2B sec. 7)

Barrios, John of Magnolia
Order Number: 050790
Date of Order: 9/20/2005
Order Final In: September
Action Taken: $1,500 fine; Must complete 30 hours of continuing education
Violation: Failed to comply with continuing education requirements

Brewer, William G of Rochester
Order Number: 050793
Date of Order: 9/20/2005
Order Final In: September
Action Taken: General Life, Accident, and Health License denied
Violation: Felony offense; Enganged in conduct involving moral turpitude

Central Mutual Insurance Company of Van Wert, OH
Order Number: 050801
Date of Order: 9/21/2005
Order Final In: September
Action Taken: Restitution to policyholders
Violation: Allegedly charged unfairly discriminatory rates

CEU.COM of Old Saybrook,
Order Number: 050802
Date of Order: 9/21/2005
Order Final In: September
Action Taken: $4,400 fine
Violation: Provided courses to students after the course certifications had expired; Allowed students to print certificates of completion

CMI LLOYDS of Van Wert, OH
Order Number: 050832
Date of Order: 9/29/2005
Order Final In: September
Action Taken: Restitution to policyholders
Violation: Allegedly charged unfairly discriminatory rates

First American Title Insurance Company – Corpus Christi of Corpus Christi
Order Number: 050756
Date of Order: 9/1/2005
Order Final In: September
Action Taken: $20,000 fine
Violation: Employed and utilized an unlicensed escrow officer

Fonza, April of Tyler
Order Number: 050797
Date of Order: 9/20/2005
Order Final In: September
Action Taken: Restitution; General Property and Casualty License revoked
Violation: Engaged in fraudulent or dishonest acts or practices; Misappropriated or converted money belonging to an insurer or insured

Garner, Ricky B of Fort Worth
Order Number: 050761
Date of Order: 9/6/2005
Order Final In: September
Action Taken: General Life, Accident, Health and HMO License denied
Violation: Felony conviction

Green, Tammy Michelle of Weatherford
Order Number: 050792
Date of Order: 9/20/2005
Order Final In: September
Action Taken: $3,000 fine; General Property and Casualty License revoked
Violation: Failed to comply with continuing education requirements

Harper, Ronald David of Houston
Order Number: 050791
Date of Order: 9/20/2005
Order Final In: September
Action Taken: $1,500 fine
Violation: Failed to comply with continuing education requirements

Hatcher, Mary Teresa of Farmers Branch
Order Number: 050806
Date of Order: 9/21/2005
Order Final In: September
Action Taken: $750 fine; Must complete 15 hours continuing education
Violation: Failed to comply with continuing education requirements

Hurst Holme Insurance Company, LTD., International Advisory Services, LTD. of Hamilton HM HX, Bermuda
Order Number: 050677
Date of Order: 7/29/2005
Order Final In: September
Action Taken: $100,000 fine; Cease and Desist Order
Violation: Unauthorized insurance

International Wet Marine Underwriters; Marine Underwriters Limited; Marine Specialty Management; Reynolds, Craig; Woods, Bruce of Lake Havasu City, AZ
Order Number: 050774
Date of Order: 9/12/2005
Order Final In: September
Action Taken: $20,000 fine
Violation: Unauthorized insurance

Jones, Robert Haskell of Amarillo
Order Number: 050795
Date of Order: 9/20/2005
Order Final In: September
Action Taken: General Life, Accident and Health License revoked
Violation: Failed to comply with terms of an issued consent order

Kelly, Erica Singleton of Houston
Order Number: 050805
Date of Order: 9/21/2005
Order Final In: September
Action Taken: General Property and Casualty License revoked
Violation: Misappropriated or converted money belonging to an insurer or insured; Materially misrepresented terms and conditions of an insurance policy

New York Life Insurance Company of New York City, NY
Order Number: 050758
Date of Order: 9/1/2005
Order Final In: September
Action Taken: $5,000 fine
Violation: Issued an unapproved group accident and health certificate

Nicholson, Don Alan of Addison
Order Number: 050757
Date of Order: 9/1/2005
Order Final In: September
Action Taken: $3,336 fine subject to a dollar-for-dollar reduction by restitution to $1,000
Violation: Acted as an agent for unauthorized entities

Schmidt, Michael Howard of Orlando, FL
Order Number: 050803
Date of Order: 9/21/2005
Order Final In: September
Action Taken: $1,500 fine
Violation: Failed to timely file required Annual Agent Reports for Risk Retention and Purchasing Groups; Failed to timely respond to requests for information from TDI

State and County Mutual Fire Insurance Company of Fort Worth
Order Number: 050785
Date of Order: 9/16/2005
Order Final In: September
Action Taken: $40,000 fine; Required to strictly oversee its managing general agent
Violation: Used unapproved policy forms

Taylor, Deborah C of Dripping Springs
Order Number: 050794
Date of Order: 9/20/2005
Order Final In: September
Action Taken: Restitution; General Property and Casualty License and General Life, Accident, and Health License revoked
Violation: Misappropriated or converted money belonging to an insurer or insured; Engaged in fraudulent or dishonest acts or practices

Thompson, James Donald Jr. of Kingwood
Order Number: 050796
Date of Order: 9/20/2005
Order Final In: September
Action Taken: General Life, Accident, and Health License revoked
Violation: Failed to comply with Commissioner’s Order

Trumbull Insurance Company of Harford, CT
Order Number: 050804
Date of Order: 9/21/2005
Order Final In: September
Action Taken: $7,500 fine
Violation: Used an unapproved endorsement

Whittington & von Sternberg of Houston
Order Number: 050786
Date of Order: 9/16/2005
Order Final In: September
Action Taken: $3,000 fine
Violation: Taught a continuing education course with an expired certificate